How Elon Musk scored a US$55bil pay package that’s now under fire

In this courtroom sketch, venture capitalist Ira Ehrenpreis, left, is cross examined by attorney Gregory Varallo, standing at right, as testimony started in Wilmington, Delaware, on Monday, Nov 14, 2022, in a shareholder lawsuit challenging approval by Tesla's board of a compensation plan potentially worth more than US$55bil for CEO Elon Musk. Chief Judge Kathaleen McCormick, center, presided. — Elizabeth Williams via AP

A Silicon Valley venture capitalist who served on Tesla Inc’s board testified that the largest executive-pay package in US corporate history was necessary to keep Elon Musk “engaged” in the electric carmaker he founded.

Taking the stand on Nov 14 as the first witness in a trial over the propriety of paying Musk some US$55bil (RM252.31bil), Ira Ehrenpreis said the Tesla board recognised in 2017 that the chief executive officer was a “serial entrepreneur” and wanted to make sure he didn’t leave the company to pursue other interests.